Captured Finance Vehicle - how to capture monthly into Finance charges Expense acc?

[Tarryn]

I have captured a financed vehicle onto Pastel into the relevant GL accounts. (Long Term Borrowing- Vehicle & Asset Finance / Advance,Deffered Finance Charges / Vat Account etc)

How do you work out the finance charges into "monthly" so can do a monthly journal entry into the Finance charges expense account so it reflects on the income statement?





Thanks
Tarryn

[CLIVE-TRIANGLE]

Your monthly payment debits the long term liability account.
Monthly do a journal, debiting finance charges expense account and credit Deferred finance charges. Use your own amortization schedule.
At the end of the year obtain an amortization schedule from the finance house and journalise the inevitable adjustments.